NZ institutional investors have piled into two long-standing Australian-domiciled AMP Capital infrastructure funds for the first time as local interest in the asset class accelerates, according to the group’s NZ chief, Grant Hassell. In a statement last week, Hassell said more NZ investors were “seeking to increase their exposure to the [infrastructure] asset class” attracted… [Read More…]
Investment News
Duration is finished: why fixed income managers must be flexible
Fixed income managers can no longer rely on duration as the 35-year old bond rally fizzles out, according to Mark Mitchell, director of recently-launched Australian boutique bond shop Daintree Capital Management. Mitchell, in NZ mid-March as part of the Heathcote Investment Partners ‘Meet the Manager’ roadshow, said the traditional long sovereign bond bet is likely… [Read More…]
Australian report shows why tax efficiency matters for super savers
Super fund members are missing out if their fund fails to adopt an integrated tax efficient approach to equity investing, according to global implementation manager Parametric, with a net benefits of up to 7.2 per cent a year over 40 years and multiple scenarios. Parametric’s latest study tracks the experiences of three hypothetical super fund… [Read More…]
ESG in a material world: a new way to cut the cloth
In a potentially feel-good, do-well move Russell Investments has redesigned its environment, social and governance (ESG) scoring process to pin down bottom-line, company-specific ‘material’ factors. In a paper released last week, Russell says back-testing of its tailored ESG rating system shows investors could “gain an additional 22 basis points (versus using the traditional ESG score)”…. [Read More…]
How emerging markets made it back into vogue
They never should have gone out of fashion, of course, at least not with big super funds, but with a return to relative normality with their growth trajectories and fully valued equities and bonds in most western countries, the big emerging markets (EM) buyers are back. According to Kimon Kouryialas, head of Pan Asia business… [Read More…]
Chinese bank fills NZ funds job with local experience
Bank of China NZ (BOC) has hired well-known NZ funds management figure, Mark Ford, to run its nascent investment business. Ford joined BOC last week, replacing the bank’s former NZ head of family office, Eric Wei, who took up the newly-created position of director wealth management Asia with broking firm FNZC last November. In 2016… [Read More…]
Market crash spins out robos, more tests required
Several US robo-advisers downed tools earlier this month as the mini market meltdown over-stretched their digital abilities, reports have revealed. According to the US Financial Planning website, a clutch of well-known robo-advice platforms – including Fidelity, TD Ameritrade, T Rowe Price, Vanguard, Charles Schwab, Betterment and Wealthfront – “went dark” after plunging equity markets early… [Read More…]
Freedom of choice mooted for new advice disclosure rules
Financial advisers will likely enjoy more flexible disclosure requirements under proposals currently being drafted by the Ministry of Business, Innovation and Employment (MBIE). Sharon Corbett, MBIE principal policy adviser, said there was broad agreement that disclosure under the in-progress Financial Services Legislation Amendment Bill (FSLAB) should be a more fit-for-purpose model than the current law… [Read More…]
NZX merger a downer, study finds
Most local financial services players would oppose any merger of the NZX with an offshore exchange, according to a new study published last week. The NZ Institute of Economic Research (NZIER) report – commissioned by the NZX – found all of the market participants interviewed for the study favoured a “local exchange presence”. Despite the… [Read More…]
How pure-play opens up game for listed infrastructure (and why it’s good on defence)
Listed infrastructure kept its historical defensive record intact during the recent bout of market volatility, according to Russell Investments’ Adam Babson. In NZ last week, Babson, portfolio manager for the Russell Global Listed Infrastructure Fund, said the sector “held up well” as wider equity markets stumbled heavily early in February. “In a market downturn [listed… [Read More…]